Chilean Banks Continue To Tap Local Market

Banco de Chile, Chile’s second-largest bank sold $171 million worth of local bonds Monday. The five-year bonds were placed with an annual interest rate of 3.69%, a spread of 63 basis points above benchmark Central Bank bonds. Banco de Chile last issued bonds in mid-July, when it placed $200 million of 10-year bonds in the international markets. At the end of last week, the country’s fourth-largest bank, Banco de Crédito e Inversiones (BCI), placed $34 million worth of subordinated bonds in the local market at an annual interest rate of 4.35% and with a maturity of 25 years. In July, the Bank sold bonds worth $33.3 million with a coupon of 3.83% and a maturity of 3.45 years. Both BCI deals were managed by BCI Corredores de Bolsa.